Adaptive expectations assumes that individuals
A) can accurately predict the future.
B) base predictions on random events (i.e., animal spirits).
C) form their predictions of macroeconomic variables randomly.
D) use all available information in predicting the future.
E) none of the above
E
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In game theory a listing of the rewards or punishments that each player will receive for each possible combination of strategies is called
a. the marginal strategy schedule b. the payoff matrix c. strategic planning d. the input-output matrix e. the game listing payoff
Decisions on the Fed’s buying and selling of government securities to control the U.S. money supply are made by
a. the Federal Open Market Committee. b. Federal Reserve Banks. c. the Board of Governors. d. the president of the New York Federal Reserve Bank.